West Virginia Income Tax Calculator
Tax Breakdown
West Virginia Tax Overview
West Virginia Income Tax Brackets 2026
West Virginia has been aggressively reducing its income tax rates in recent years, with the stated goal of eventually eliminating the personal income tax entirely. The state's five-bracket graduated system currently ranges from 2.36% to 5.12%, down from a previous top rate of 6.5%. These reductions have been funded by surplus revenue from natural gas severance taxes and a growing economy.
| Taxable Income | Rate |
|---|---|
| $0 – $10,000 | 2.36% |
| $10,000 – $25,000 | 3.15% |
| $25,000 – $40,000 | 3.54% |
| $40,000 – $60,000 | 4.72% |
| $60,000+ | 5.12% |
Path Toward Income Tax Elimination
The West Virginia legislature has enacted a framework for automatic income tax rate reductions that are triggered when state revenues exceed certain benchmarks. Each trigger results in a further reduction in all bracket rates. Governor Jim Justice and his successors have championed this initiative, positioning West Virginia alongside states like Mississippi, Louisiana, and Arkansas in the race to eliminate state income taxes. If economic conditions remain favorable, West Virginia could potentially reach a zero income tax rate within the next decade.
West Virginia Sales Tax
West Virginia's state sales tax rate is 6%. Municipalities can add local sales taxes of up to 1%, making the combined rate as high as 7% in some areas. The statewide average combined rate is approximately 6.55%.
West Virginia Sales Tax Details
- Groceries — Taxed at the full 6% state rate (one of the states that taxes groceries at the full rate)
- Prescription medications — Exempt from sales tax
- Motor vehicles — Subject to a 6% consumers sales tax on the purchase price
- Services — West Virginia has one of the broadest sales tax bases in the nation, taxing many services that other states exempt
West Virginia Property Tax
West Virginia has one of the lowest effective property tax rates in the nation at approximately 0.49%. This is well below the national average and makes West Virginia attractive for property owners and retirees. Property in West Virginia is assessed at 60% of appraised value, and there are four classes of property with different levy rate limits.
Homestead Exemption
West Virginia offers a homestead exemption of up to $20,000 of assessed value for homeowners who are age 65 or older or permanently and totally disabled. This exemption applies to the primary residence and can provide significant tax savings given the state's already-low rates.
West Virginia Severance Tax and Natural Gas Economy
West Virginia's economy and state budget are significantly influenced by the natural gas and energy industry. The state imposes severance taxes on the extraction of natural resources including coal, natural gas, oil, timber, and limestone. The natural gas severance tax rate is 5% of gross value, and this revenue has been a major factor enabling the state's income tax reductions.
The Marcellus and Utica shale gas formations underlying much of West Virginia have driven an energy boom that has transformed the state's fiscal picture. Severance tax revenue, combined with related economic activity, has produced budget surpluses that fund both tax cuts and infrastructure investments.
West Virginia vs. Neighboring States
- Virginia — Graduated 2%-5.75% income tax, 5.3% sales tax, 0.80% property tax. Virginia has a higher top income tax rate and higher property taxes, but a much larger economy and higher wages.
- Ohio — 0%-3.5% income tax (recently reduced), 5.75% sales tax + local (~7.24%), 1.41% property tax. Ohio has a lower income tax rate for most earners but much higher property taxes.
- Pennsylvania — 3.07% flat income tax, 6% sales tax + local, 1.36% property tax. Pennsylvania has a lower flat income tax rate but dramatically higher property taxes.
- Kentucky — 4% flat income tax, 6% sales tax, 0.80% property tax. Kentucky and West Virginia have similar tax structures, with KY having a slightly lower flat rate.
- Maryland — 2%-5.75% state + 2.25%-3.2% county income tax, 6% sales tax, 0.99% property tax. Maryland's county income tax piggyback makes its effective rates much higher.
Frequently Asked Questions
West Virginia has five graduated brackets from 2.36% to 5.12%. These rates have been reduced multiple times and may continue declining as the state works toward eliminating income tax.
State rate is 6% plus local taxes up to 1%. Average combined rate is about 6.55%. West Virginia taxes groceries at the full 6% rate and has one of the broadest sales tax bases in the US.
Yes, approximately 0.49% effective rate, among the lowest nationally. A $20,000 homestead exemption is available for homeowners 65+ or permanently disabled.
West Virginia is phasing out its Social Security tax. The taxable portion decreases each year, with the state moving toward full exemption of Social Security benefits from state income tax.
Yes. The legislature has established automatic rate reductions triggered by revenue benchmarks. Funded by natural gas severance taxes, the state could potentially reach zero income tax within the next decade.